Kathleens Insurance Advice

As with all important paperwork, it’s good to know how long to store insurance documents. It’s also a good idea to store each type of policy information in the right place for easy accessibility. Insurance tends to be one of those things that you purchase and then forget about it until you need it. By following these few tips on storing your insurance documents you’ll be able to quickly locate all the information you need when an emergency arises.

How Long Do You Need to Keep Records?
The length of time you need to keep your records depends on the type of document. If in doubt, check with your insurance company.

• Life Insurance Policy Information – As long as your policy is current, keep all paperwork and policy information in a safe place.If you have a cash value policy you will need to keep the policy as long as you keep the investment. If you sell or cash out your policy you’ll need to retain the financial documentation for 7 years if tax related.
• Car Insurance Documents – You’ll need to keep your automobile policy information as long as your policy is current. Once you’ve received a new policy or switched policies you can destroy old policy documentation.
• Health Insurance documents – You’ll need to keep all documentation as long as your policy is current. If you deducted the cost of your insurance on your taxes be sure to keep your invoices or bills for 7 years in case of an audit.
• Claim Information – If you ever have to file a claim, you’ll need to keep track of all of your paperwork.  A good rule of thumb for these kinds of documents is 7 years.

Where to Store Insurance Documents

• Keep policy numbers in an easily accessible place in case you need to file a claim. It’s a good idea to have your insurance companies names, phone numbers and policy numbers written down and stored in a safe location outside of your home. That way, if there is ever a fire or other situation where you cannot access your home records you still have all your crucial information.
• Car Insurance Documents – For your auto insurance policy you’ll want to be sure to keep proof of insurance either in your wallet or in your car. Many states have required insurance and if you’re ever pulled over and cannot provide proof of insurance the tickets can be hefty – over $400 in some instances.
• Health insurance documents should be kept in two places. Policy information can be filed but your health insurance card should be carried with you at all times.
• If you store your paperwork at home, its worth investing in a small fireproof safe. If you put it in a hidden place you’ll protect your important documents from thieves as well as from fire.

Insurance paperwork is important to keep track of. By keeping all paperwork while policies are active, and anything related to a tax issue for 7 years you’ll be in good shape. Keep paperwork in an accessible place and you’ll quickly be able to find it in a hurry.